GTC Biotherapeutics (fka GTCB)

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GTC collaboration musings...
from RMF / DD et al... FWIW

LFB
“Thanks to this collaboration with GTC, the world leader in transgenic animal technology, LFB has access to the innovative production platform we need to be able to expand our market base in Europe and potentially beyond”, stated Christian Béchon, LFB’s Chairman and Chief Executive Officer. “We are excited to be working on a broad portfolio of recombinant plasma proteins and monoclonal antibodies to provide the opportunity for expanded patient access to these products.”

LEO
"LEO is firmly committed to establishing the Critical Care area as a strong and growing segment of our business. ATryn® has significant growth potential and is a natural extension of our current Critical Care portfolio. We are pleased to work with GTC to bring the first recombinant antithrombin product to our markets. Also, we are delighted that ATryn® will be the first antithrombin product that would be approved in all the countries of the European Union, providing a consistent and secure source of supply to all of our customers," says Ernst Lunding, President and Chief Executive Officer of LEO.

Merrimack
The main economic upside for MM-093 is in RA, a very large indication (#msg-27669769). If MM-093 works in RA, its non-TNF-a mechanism of action and presumably low incidence of side effects ought to put it in a strong position to serve the roughly 50% of RA patients for whom one of the TNF-a drugs (Remicade, Humira, Enbrel) does not do the trick. Moreover, MM-093 should be safer than Rituxan, which is emerging as a popular choice in second-line RA following failure on a TNF-a drug.

Although it’s still early in the development program, it’s not unreasonable to think that MM-093 has bona fide blockbuster potential in RA. If this turns out to be true, even relatively thin supplier margins could eventually mean big money for GTC.
...My guess is that GTC will get a mid-single-digit IP royalty on MM-093 sales and a markup on GTC’s fully-allocated production cost for bulk product that GTC sells to Merrimack. For the production cost mark-up, the industry standard is about 10%. If, for the sake of discussion, we say that GTC’s fully-allocated production cost will be 15% of the end-user selling price of MM-093, then the 10% mark-up is equivalent to a 1.5% royalty on sales over and above the royalty that will be earned for Merrimack’s use of GTC’s IP. Hence, the overall economic value of the deal for GTC could be a high-single-digit royalty on sales. This could amount to a highly consequential income stream if MM-093 achieves blockbuster status. GTC also holds a small equity stake in Merrimack, which was established in 2003 (#msg-29295823).

PharmAthene
...GTC has not disclosed the economic terms of the PharmAthene relationship; however, Dr. Cox did provide some color in reply to a question on GTC’s 4Q06 CC (#msg-17607391). Based on that, I think it’s conservative to assume that GTC stands to earn a mid-single-digit royalty on the sales of Protexia. The PharmAthene relationship could thus generate a non-trivial income stream for GTC, especially if the Protexia program in Alzheimer’s disease were to pan out.